Picture this: an employee opens their pay stub expecting to see 3% of their salary going into their 401(k). Instead—nothing. Payroll missed the deferral months ago. By the time anyone notices, the company owes back contributions, lost earnings, and maybe even penalties.

The short answer: it depends.

The long answer: there are four main cost categories, and how you structure them determines whether you get a fair, sustainable plan—or one that frustrates employees and exposes your company to liability.

Think of a 401(k) like building a house—you’ll pay for the architect, the contractor, and the materials. Skip one, and the whole structure is at risk. The same is true for retirement plans.

If you’re a business leader exploring a 401(k) for your employees, you probably have the same first question everyone else does: “How much is this going to cost us?”

Who’s legally responsible when your 401(k) plan gets hit with a lawsuit—your company, or your advisor?
And is your advisor someone who takes accountability, or someone who simply makes suggestions and walks away?